Polypropylene Compounds Market

Polypropylene Compounds Market Estimated To Witness High Growth Owing To Growing Packaging Industry and Increasing Automotive Production

by

The polypropylene compounds market is estimated to be valued at US$ 21.57 billion in 2022 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Polypropylene compounds are widely used in various applications such as automotive, consumer goods, appliances, electronics, packaging, and construction sectors. They offer properties like resistance to chemical corrosion, heat, moisture, and excellent insulation that make them suitable for use in automotive components, household appliances, furniture parts, and packaging films. The compounds are lightweight, versatile, and cost-effective which further contribute to their increasing demand across different industries.

Market Dynamics:
The global polypropylene compounds market is expected to witness significant growth over the forecast period owing to the rapidly growing automotive production and packaging industry across the world. One of the major drivers for the market growth is the increasing automotive production. As per the International Organization of Motor Vehicle Manufacturers (OICA), global vehicle production grew by over 4% from 93.39 million units in 2019 to around 97.21 million units in 2021. Polypropylene compounds find wide application in automotive components due to properties like durability, lightweight, and impact resistance. Moreover, rising demand for sustainable and flexible packaging solutions from industries like food & beverage, consumer goods, personal care is fueling the demand for polypropylene compounds in packaging films and containers. Their recyclability and moisture barrier properties make them an attractive packaging material. However, fluctuations in the prices of propylene, a key raw material, poses challenge to market growth.

Segment Analysis
The polypropylene compounds market is segmented by end-use into automotive, packaging, infrastructure, and others. The automotive segment dominates the market and accounts for over 30% share due to the increasing usage of polypropylene compounds in manufacturing automotive components owing to their superior properties such as abrasion resistance, chemical resistance, and excellent mechanical properties.

PEST Analysis
Political: Any changes in policies and regulations related to vehicle emissions and fuel efficiency standards directly impact the demand for polypropylene compounds from the automotive industry.
Economic: Growth in the automotive and infrastructure industries along with rising disposable incomes fuels the demand for polypropylene compounds globally.
Social: Increasing demand for lightweight and fuel-efficient vehicles drives the consumption of polypropylene compounds.
Technological: Continuous advancements in polymer technology have led to development of various grades of polypropylene compounds with improved properties meeting diverse industry requirements.

Key Takeaways

The Global Polypropylene Compounds Market Size is expected to witness high growth, exhibiting CAGR of 7.6% over the forecast period, due to increasing demand from the automotive industry for manufacturing lightweight automotive components. Regionally, Asia Pacific dominates the market and accounts for over 40% share due to rapid industrialization and growth of automotive and packaging industries in countries such as China and India.

Key players operating in the polypropylene compounds market are Mitsui Chemicals, Inc., Exxon Mobil Corporation, Japan Polypropylene Corporation, SABIC, Sumitomo Chemical Co., Ltd., and Washington Penn Plastic Co., Inc. Mitsui Chemicals, Inc. holds nearly 15% market share owing to its wide portfolio of polypropylene compounds and established presence across regions.

The increasing use of polypropylene compounds in manufacturing automotive components is fueling market growth. The automotive segment accounts for over 30% share as polypropylene exhibits superior properties such as abrasion resistance, chemical resistance, and excellent mechanical properties. Regionally, Asia Pacific dominates the market and accounts for over 40% share owing to strong growth of automotive and infrastructure industries in emerging economies such as China and India. Key players such as Mitsui Chemicals, Inc. are focusing on expanding their global footprint through strategic partnerships and new product launches.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it